Exemption from tax on the amount invested to the AIF, as well as on the capital gains from the disposal of units/shares of the AIF

Exemption from tax on profits earned by the AIF from sale of shares or other instruments, as well as from dividends received by companies in which the AIF has invested

Flat corporate tax (12,5%) on annual net profits for AIFs of corporate form

AIF Legal Forms

An Alternative Investment Fund (AIF) may be set up in one of the following legal forms :

(a) as a mutual fund

(b) as an investment company in the legal form of a limited liability company with shares

(c) as a limited liability partnership

Also, an AIF may consist of more than one investment compartment. Each investment compartment of the AIF may issue units which correspond to the assets of the specific compartment. The value of the units may vary among investment compartments.

AIF Types

Alternative Investment Funds (AIFs) are established in two main types :

(Ι) AIF with limited number of persons (AIFLNP)

(ΙΙ) AIF with unlimited number of persons (AIF)

Characteristics of AIFs with limited number of persons (AIFLNP)

May be marketed only to well-informed and/or professional investors

Cannot exceed total number of 75 investors/unit holders

Freely transferable investor units/shares of the AIFLNP, with the condition that this transfer does not result in the fund having more than 75 investors/unit holders

In certain cases may not be required to appoint a licensed manager or a custodian

An AIFLNP can be established either as a fixed or variable capital company or as a limited partnership

An AIFLNP can be formed with multiple investment compartments

AIFLNP are not subject to minimum capital requirements

Characteristics of AIFs with unlimited number of persons (AIF)

May be marketed to retail, or well-informed and/or professional investors

Freely transferable investor units/shares of the AIF

Must appoint a custodian

Can be listed on a recognized stock exchange, and AIFs marketed to retail investors can be traded

Subject to minimum capital requirements of €125.000 or €300.000 if it is a self-managed fund

May be subject to certain investment restrictions depending on the investor type and the overall investment policy

An AIF can be established either as a fixed or variable capital company or as a limited partnership or as a mutual fund